Does Agricultural Trade promote Chinese economic growth? ARDL Approach

Bakari, Sayef and Sofien, Tiba (2019): Does Agricultural Trade promote Chinese economic growth? ARDL Approach.

Abstract

Since the beginning of the third millennium, the Chinese agricultural exports increase at a strong pace. In this context, this paper aims to answer the question if the agriculture trade promotes Chinese economic growth by employing the ARDL bounds testing for the study period from 1984 to 2017. In the long-run, our highlights reported that domestic investment and agricultural exports have a positive effect on economic growth. However, agricultural imports have a significant negative impact on growth. In the short-run, our insights reported a positive and significant effect of domestic investment, agricultural imports and agricultural exports on economic growth. The positive impact of agriculture exports on growth is due to the importance of agriculture in terms of creating jobs and opportunities for the economy as a whole. Also, sufficient national investment in the agriculture sector leads to enlarging these opportunities and then improves the Chinese economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Agricultural trade; economic growth; ARDL bounds testing
• Subjects: F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

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